DOE Launches Web Site and Solicitation for Loan Guarantee Program

DOE has launched a new Web site to support its $2 billion Loan
Guarantee Program, which was announced on August 7th. The site includes a
solicitation that was released on August 8th, calling for projects that
support the President's Advanced Energy Initiative. Specifically, the
solicitation requests proposals relating to biomass, hydrogen,
hydropower, solar, and wind energy; hybrid and alternative fuel
vehicles; and industrial energy efficiency. Also included in the
solicitation are projects related to the efficient and reliable
delivery of electricity, pollution control equipment, carbon
sequestration, and advanced coal technologies. DOE plans to select
loan guarantee commitments totaling as much as $2 billion, but there's
a catch: since DOE does not expect to receive congressional
appropriations to cover the costs of the loan guarantees, borrowers
will likely have to pay the subsidy cost up front, when closing the
loan. The pre-application due date is November 6th.

Although the current solicitation is aimed specifically at the
Advanced Energy Initiative, future loan guarantee solicitations may be
broader. The guidelines released on August 14th spell out 10 categories of
projects for loan guarantees: renewable energy systems; hydrogen fuel
cells; production facilities for fuel-efficient vehicles; energy-efficient end-use technologies; advanced nuclear energy facilities;
advanced fossil energy systems; efficient electrical generation,
transmission, and distribution; carbon capture and sequestration;
pollution control systems; and refineries. See the
Loan Guarantee Program Web site
and download the solicitation
(PDF 238 KB) and the guidelines
(PDF 90 KB).
Download Adobe Reader.